Advanced Search
MyIDEAS: Login to save this paper or follow this series

Informal Institutions and Cross-Country Income Differences

Contents:

Author Info

  • Stephen Knowles,
  • Clayton Weatherston
Registered author(s):

    Abstract

    There is a growing literature which analyses, using cross-country data, whether institutions or geography is the most important deep determinant of income per capita. The empirical proxies used for institutions in this literature, however, focus only on formal institutions, rather than informal institutions, despite the fact that North (1990) emphasised the importance of informal institutions. We include a measure of informal institutions, a concept we argue is closely related to social capital and cultural norms, in a representative deep-determinants framework and find informal institutions to be just as important a deep determinant of income levels as are formal institutions.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.nottingham.ac.uk/credit/documents/papers/06-06.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by University of Nottingham, CREDIT in its series Discussion Papers with number 06/06.

    as in new window
    Length:
    Date of creation:
    Date of revision:
    Handle: RePEc:not:notcre:06/06

    Contact details of provider:
    Postal: School of Economics University of Nottingham University Park Nottingham NG7 2RD
    Phone: (44) 0115 951 5620
    Fax: (0115) 951 4159
    Web page: http://www.nottingham.ac.uk/economics/
    More information through EDIRC

    Related research

    Keywords: Institutions; deep determinants; social capital; culture.;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2002. "Institutions Rule: The Primacy of Institutions over Geography and Integration in Economic Development," NBER Working Papers 9305, National Bureau of Economic Research, Inc.
    2. Pranab Bardhan, 2005. "Institutions matter, but which ones?," The Economics of Transition, The European Bank for Reconstruction and Development, The European Bank for Reconstruction and Development, vol. 13(3), pages 499-532, 07.
    3. Olsson, Ola & Hibbs Jr., Douglas A., 2000. "Biogeography and Long-Run Economic Development," Working Papers in Economics, University of Gothenburg, Department of Economics 26, University of Gothenburg, Department of Economics, revised 11 Aug 2000.
    4. Rafael LaPorta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert Vishny, . "The Quality of Government," Working Paper 19452, Harvard University OpenScholar.
    5. Marcel Fafchamps, 2002. "Returns to social network capital among traders," Oxford Economic Papers, Oxford University Press, Oxford University Press, vol. 54(2), pages 173-206, April.
    6. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
    7. Paola Sapienza & Luigi Zingales & Luigi Guiso, 2006. "Does Culture Affect Economic Outcomes?," NBER Working Papers 11999, National Bureau of Economic Research, Inc.
    8. La Porta, Rafael & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1997. " Legal Determinants of External Finance," Journal of Finance, American Finance Association, American Finance Association, vol. 52(3), pages 1131-50, July.
    9. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output Per Worker Than Others?," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 114(1), pages 83-116, February.
    10. Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Governance matters," Policy Research Working Paper Series, The World Bank 2196, The World Bank.
    11. Koenker, Roger, 1981. "A note on studentizing a test for heteroscedasticity," Journal of Econometrics, Elsevier, Elsevier, vol. 17(1), pages 107-112, September.
    12. Easterly, William & Levine, Ross, 2003. "Tropics, germs, and crops: how endowments influence economic development," Journal of Monetary Economics, Elsevier, Elsevier, vol. 50(1), pages 3-39, January.
    13. Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Aggregating governance indicators," Policy Research Working Paper Series, The World Bank 2195, The World Bank.
    14. Guido Tabellini, 2005. "Culture and Institutions: economic development in the regions of Europe," Working Papers, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University 292, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    15. Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(4), pages 1251-88, November.
    16. David Fielding & Sebastian Torres, 2008. "Cows and Conquistadors: A Contribution on the Colonial Origins of Comparative Development," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 44(8), pages 1081-1099.
    17. Louis Putterman & Valerie Bockstette, 2000. "States and Markets:the Advantage of an Early Start," Working Papers, Brown University, Department of Economics 2000-12, Brown University, Department of Economics.
    18. Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2004. "Do Institutions Cause Growth?," Journal of Economic Growth, Springer, Springer, vol. 9(3), pages 271-303, 09.
    19. Jeffrey D. Sachs, 2003. "Institutions Don't Rule: Direct Effects of Geography on Per Capita Income," NBER Working Papers 9490, National Bureau of Economic Research, Inc.
    20. Paul F. Whiteley, 2000. "Economic Growth and Social Capital," Political Studies, Political Studies Association, Political Studies Association, vol. 48(3), pages 443-466, 06.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:not:notcre:06/06. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hilary Hughes).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.